Exam 24: Monopolistic Competition Oligopoly and Game Theory

Suppose that all countries in the world agree that it is important to undertake policies to reduce global warming and its associated negative economic effects. If the countries agree to undertake these policies, the prisoner's dilemma setting that this situation places the countries in would lead one to conclude that

Exhibit 24-10 Suppose that the letter grade earned on a test for each student in a class depends upon how well he/she does relative to other students in the class. This exhibit shows a prisoner's dilemma setting for two representative students in the class, George and Gina. -Refer to Exhibit 24-10. If Gina studies for two hours and George studies for four hours, George's letter grade on the test will be a ___________ and Gina's letter grade on the test will be a __________________.

Exhibit 24-7 -Refer to Exhibit 24-7. At the profit-maximizing level of output, the marginal cost of the last unit produced is _________ and the marginal revenue of the last unit sold is ____________.

Exhibit 24-9 ​ ​ ​ -Refer to Exhibit 24-9. The type of product sold in a perfectly competitive market is ___________ [blank (D)]. The type of product sold in a monopolistic competitive market is ____________ [blank (E)]. The type of product sold in an oligopoly is _________ [blank (F)]. The type of product sold in a monopoly is ___________ [blank (G)].

"In equilibrium, a monopolistic competitor will produce an output level that is less than the level that would minimize its average total costs." This is a statement of the

The monopolistic competitor has a __________ elastic demand curve than the monopolist, largely because it faces __________ substitutes for the product it produces and sells.

The profit-maximizing monopolistic competitor produces where price

Grade inflation in colleges may possibly be a result of college professors being in a prisoner's dilemma setting.

Exhibit 24-8 -Refer to Exhibit 24-8. A profit-maximizing monopolistic competitive firm that produces at the level of output where MR = MC will set the price at

In a monopolistic competitive market, which of the following factors probably does not give rise to product differentiation?

Which of the following is not an assumption of the theory of monopolistic competition?

Which of the following statements is false?

What does the demand curve faced by a monopolistic competitive firm look like? Explain why it is sloped this way, and what this implies about the relationship that exists between price and marginal revenue under monopolistic competition.

Exhibit 24-9 ​ ​ ​ -Refer to Exhibit 24-9. There ___________ barriers to entry in a perfectly competitive market. There ____________ barriers to entry in monopolistic competition. There ____________ barriers to entry in oligopoly. There ____________ barriers to entry in monopoly. [Your answers should fill in blanks (H), (I), (J) and (K), respectively.]

Exhibit 24-7 -Refer to Exhibit 24-7. A monopolistic competitive firm earns a total profit of __________ when it produces and sells 20 units of its good.

The prisoner's dilemma game illustrates rational decisions made by individuals which lead to a jointly efficient outcome.

One of the ways in which some monopolistic competitors try to become more like monopolists is through the use of designer labels.

There are few sellers and many buyers in the

An industry is composed of 10 firms, all with equal sales. The four-firm concentration ratio in this industry is

In an oligopoly market, unlike in other market structures, firms